CMGI, NAVI - NaviSite: Finding Its Way Out of The CMGI Shadow - This bird has left the nest. - 500 Beiträge pro Seite

[investor_007]

Date :02/08/2000
Author :Thomas M. Kostigen
Copyright :Investor’s Business Daily
Title :NAVISITE INC. /Andover, Massachusetts - Spinning A Web Of Business-To-Business Sites


N aviSite Inc.: Finding Its Way Out of The CMGI Shadow

This bird has left the nest.

NaviSite, a majority-owned operating company of CMGI Inc., is flying high after its initial public offering this year, but the true test of its flight will be on garnering a big enough portion of the Web hosting audience.

NaviSite is a provider of Web hosting and application services for companies conducting mission-critical business on the Internet. For example, NaviSite is will host the Earth Image Contest Web site launched specifically for this year`s Earth Day. The site is expected to attract more than 10 million visitors, NaviSite says.

"This is an example of our ability to manage operations and let the company focus," said Joel Rosen, chief executive of NaviSite. "The vast majority of companies and beginning Web companies don`t have the skills in-house to manage operations. And the vast majority don`t want to."

The business-to-business Web hosting audience NaviSite is targeting is comprised of businesses seeking to outsource their services on the Web. This universe could potentially be any business that doesn`t want to devote time, energy and dollars to building such services as Web hosting and application servicing in-house.

NaviSite is making a play to become an ASP, or application service provider, says Clay Ryder, an industry analyst at Zona Research in Redwood City, Calif. It`s an infant industry thriving on outsourcing.

"How many corporations own their own phone system? Some of the larger ones do. But most others prefer to have the phone company do that. This is the same model," Ryder said.

NaviSite plans to attack the business client base by offering synergy through their existing services. "The Internet is all about speed. We can get people up and running - usually within seven business days. That is an enormous advantage for companies in this environment," Rosen said. "We operate 24/7, and we can leverage that."

The challenges for NaviSite are reaching and servicing growth companies that will opt to continue to outsource rather than bring in-house the services that NaviSite offers.

Tactically, NaviSite has to consider rapid technology changes and reliability of services to keep a strong rate of retention.

"The Internet is at the early point of technology. And we have to look at the changes as well as the leading and bleeding edges of that," Rosen said.

To reach new clients, NaviSite relies on existing customer referrals, as well as referrals from Web developers and system integrators.

As a CMGI-owned company, NaviSite reaps the benefit of having a built-in customer base through its parent and sister companies. Indeed, NaviSite began as the in-house IT department of CMGI, Rosen says. In 1996, NaviSite became its own company. And in 1998, it became commercially operating, with about 25% of its sales coming from non-CMGI companies. Now 85% of NaviSite`s sales come from non- CMGI-affiliated companies.

Leaving The Nest

CMGI is an Internet incubator company that develops, acquires and operates more than 60 Internet-related companies.

NaviSite can surely operate on its own now. It reaped $80 million from its IPO. It closed its opening day of trading on Oct. 22 at 34 5/8, up from the $14 offering price. Since, shares have reached as high as 154 1/2. It trades as NAVI is now around 147.

"We`re just getting started," Rosen said. "There is strong demand for our services. Forrester (Research) says . the market is something like $13 billion by 2003. And we are operating in the millions now."

But not in the black. The company lost 48 cents per share in the fiscal first quarter of 2000 compared with a 36-cent loss a year ago. Revenue swelled 251% to $5.9 million, the fourth-straight quarter of triple-digit growth.

To B2B

To be sure, the business-to-business (or B2B in Internet-speak) marketplace is the most talked about in terms of growth, venture capital and new opportunity. Growth numbers have the B2B Internet services industry in the billions and trillions over the next decade. CMGI recently launched its own B2B venture fund with $1 billion targeted for Internet company investments.

"B2B is clearly growing," said Internet analyst Ryder. "Who knows how much? If you take anything that ever touches an industry, then it adds up. But really we are talking about space." And he said the space Navi-Site operates in is wide open.

NaviSite is catching the eye of some brokerages. Hambrecht & Quist, Robertson Stephens, Dain Rauscher and First Albany cover the company.

Mama CMGI gets the big interest. But like any recent departure, the longer and farther away the more it develops a name of its own. NaviSite is located in Andover, Mass., where CMGI is based. The company just moved into quarters of its own, however - across town.

[investor_007]

NaviSite`s ISV Program Membership Grows More Than 400% in Six
Months; <NAVI.O>


NaviSite`s ISV Program Membership Grows More
Than 400% in Six Months; Company Provides Infrastructure, Managed
Hosting and Co-Marketing For ASPs

ANDOVER, Mass.--(BUSINESS WIRE)--March 30, 2000--NaviSite, Inc.
(Nasdaq:NAVI), a leading ASP and Web hosting company and a
majority-owned operating company of CMGI, Inc. (Nasdaq:CMGI), today
announced that membership in company`s ISV (Independent Software
Vendor) Program, through which NaviSite provides services and support
for software vendors that wish to adopt the ASP model, has grown by
400% to more than 20 in the past six months. These new ISV partners
join the 60 companies already members of NaviSite`s Alliance Partner
Program, bringing the total number of partners to more than 80. The
rapid growth of the ISV program is a testament to the increasing
acceptance of the ASP model as well as the demand for infrastructure
and cross-promotional services for providers of Internet-based
applications.
The NaviSite ISV Program includes such partners as Alchemedia,
Alive.com, e-Resolve Corporation, iMakeNews, Informative,
Intranets.com, Kovair, NetMind, NewChannel, Obelisk Technology,
Optika, PictureWorks, QuickArrow, Searchbutton, Synchrony and Zytalis.
These vendors, and others, offer a wide range of outsourced
applications - ranging from customer relationship management to
e-business intelligence to digital rights management to process
management to image management solutions.
" A growing number of companies are bringing ASP offerings to
market, and most of them are recognizing that their services need a
powerful supporting infrastructure to lead their segment," said Joel
Rosen, CEO of NaviSite, Inc. "The combination of NaviSite`s expertise
and focus on having the best platform on which these ASPs can host
their offering, coupled with our customers` expertise and focus on the
application elements, makes for powerful relationships."
The NaviSite ISV program is comprised of platform, professional
services and promotional elements. NaviSite`s hosting platform
consists of its world-class infrastructure, hardware provisioning,
application management and monitoring support. For ISVs, NaviSite
provides the full range of outsourced hosting services they need to
run their application. Additionally, NaviSite offers a variety of
professional services and promotional efforts for ISVs. For example,
NaviSite offers assistance to ISV partners with a variety of
go-to-market programs with the goal of helping new ASPs promote their
offerings with marketing and sales initiatives. Examples of these
promotional programs include a listing in the NaviSite catalog,
cross-training for sales forces, public relations, newsletter, seminar
and trade show participation.
"NaviSite`s hosting expertise, as well as the promotional elements
of their ISV program, make them an outstanding partner," said Fredrick
Bullock, Senior VP of Marketing at Alchemedia. "Our mutual support for
the EarthImage2000 contest underscores both companies` commitment to
the Web community. We`re pleased to be able to support them through
Alchemedia`s commitment to image protection on the Web."
"NaviSite`s experience as a web hosting company and an ASP made
them an ideal choice to help Informative bring our product to market
quickly with a high level of visibility," said Greg Phillips, Chief
Vision Officer and Co-Founder of Informative. "We feel confident that
as we grow NaviSite has the flexibility to grow with us."
"QuickArrow`s clients use the Web-driven ECS professional services
automation solution to streamline business processes and analyze data
for more informed decision-making. Our value proposition heavily
leverages the speed and efficiency of the Web, and nobody understands
the Web-powered ASP distribution model better than NaviSite. We
confidently rely on NaviSite`s industry-leading access, reliability
and security," said Elizabeth Davis, QuickArrow co- founder and CEO.
About NaviSite
NaviSite, Inc. is a leading provider of outsourced Web hosting and
application services for companies conducting mission-critical
business on the Internet. The company`s goal is to help customers
focus on their core competencies by outsourcing the management and
hosting of mission critical Web sites and applications. NaviSite is a
majority-owned operating company of CMGI, Inc. with minority
investment from Microsoft.
NaviSite`s SiteHarbor(R) solutions provide secure, reliable,
co-location and high-performance hosting services, including
high-performance Internet access, and high-availability server
management solutions through load balancing, clustering, mirroring and
storage services. In addition, NaviSite`s enhanced management
services, beyond basic co-location and hosting, are designed to meet
the expanding needs of businesses as their Web sites and Internet
applications become more complex and as their needs for outsourcing
all aspects of their online businesses intensify. The company`s
application services, which include application hosting, management
and rental, provide cost-effective access to, as well as rapid
deployment and reliable operation of, business-critical applications,
including managed services for streaming.
For more information about NaviSite, please visit www.navisite.com
or by phone on the East coast call 888.298.8222, on the West coast
call 888.755.5525. NaviSite is headquartered at 400 Minuteman Road,
Andover, MA 01810.
This release contains forward-looking statements based on current
expectations or beliefs, as well as a number of assumptions about
future events, and these statements are subject to important factors
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The
forward-looking statements in this release address a variety of
subjects including, for example, the expected benefits of the NaviSite
ISV/ASP program and the expected functionality of NaviSite`s products
and technologies. The following factors, among others, could cause
actual results to differ materially from those described in these
forward-looking statements: NaviSite may experience difficulties
integrating technologies, operations and personnel of recent
acquisitions; the acquisitions may strain managerial and operational
resources as management tries to oversee the larger operations;
increased competition and technological changes in the markets in
which NaviSite competes; and possible failure of systems or internal
infrastructure. For a detailed discussion of these and other
cautionary statements, please refer to the filings made by each of
NaviSite and CMGI with the Securities and Exchange Commission,
including the most recent Quarterly Report on Form 10-Q of NaviSite
and the Annual Report on Form 10-K of CMGI for the most recently ended
fiscal year.
SiteHarbor is a registered trademark of NaviSite, Inc.
Other names may be trademarks of their respective owners.
--30--jr/bos*
CONTACT: NaviSite, Inc.
Brenda Suarez, 978.946.8660
bsuareznavisite.com
or
Beaupre & Co.
Darby Johnson, 603.559.5809
djohnsonbeaupre.com
TodINDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE HARDWARE
INTERNET SOFTWARE
Today`s News On The Net - Business Wire`s full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com


(c) 1998 Business Wire

[investor_007]

NaviSite Suspends Secondary Offering Due to Market Conditions
NAVI.O>


NaviSite Suspends Secondary Offering Due to
Market Conditions

ANDOVER, Mass.--(BUSINESS WIRE)--April 4, 2000--NaviSite, Inc.
(Nasdaq: NAVI), a leading application service provider (ASP) and Web
hosting provider, today announced that it is suspending previously
announced plans to pursue a secondary offering, due to market
conditions.
NaviSite announced it will pursue financing both from strategic
investors, including CMGI, and through commercial lines of credit.
About NaviSite
NaviSite, Inc. is a leading provider of outsourced Web hosting and
application services for companies conducting mission-critical
business on the Internet. The company`s goal is to help customers
focus on their core competencies by outsourcing the management and
hosting of mission critical Web sites and applications. NaviSite is a
majority-owned operating company of CMGI, Inc. with minority
investment from Microsoft.
NaviSite`s SiteHarbor(R) solutions provide secure, reliable,
co-location and high-performance hosting services, including
high-performance Internet access, and high-availability server
management solutions through load balancing, clustering, mirroring and
storage services. In addition, NaviSite`s enhanced management
services, beyond basic co-location and hosting, are designed to meet
the expanding needs of businesses as their Web sites and Internet
applications become more complex and as their needs for outsourcing
all aspects of their online businesses intensify. The company`s
application services, which include application hosting, management
and rental, provide cost-effective access to, as well as rapid
deployment and reliable operation of, business-critical applications
including managed services for streaming.
For more information about NaviSite, please visit www.navisite.com
or by phone on the East coast call 888.298.8222, on the West coast
call 888.755.5525. NaviSite is headquartered at 400 Minuteman Road,
Andover, MA 01810.
About CMGI and CMGI Ventures
With more than 65 companies, CMGI, Inc. (Nasdaq: CMGI) represents
the largest, most diverse network of Internet businesses in the world,
including both CMGI operating companies and synergistic investments
made through its venture capital affiliate, CMGI Ventures. CMGI
leverages the technologies; content and market reach of its extended
family of companies to foster rapid growth and industry leadership
across its network and the larger Internet Economy. Compaq, Intel,
Microsoft, Pacific Century CyberWorks and Sumitomo hold minority
positions in CMGI.
CMGI`s majority-owned operating companies include Engage
Technologies (Nasdaq: ENGA), NaviSite (Nasdaq: NAVI), 1ClickBrands,
1stUp.com, Activate.net, AdForce, Adsmart, AltaVista, CMGI Solutions,
Equilibrium, Flycast, iCAST, MyWay.com, NaviNet, SalesLink, Tribal
Voice and yesmail.com. CMGI Ventures has ownership interests in 49
Internet companies, including Lycos, Inc. (Nasdaq: LCOS), Critical
Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), MotherNature.com (Nasdaq:
MTHR), Ventro (Nasdaq: VNTR) and Vicinity (Nasdaq: VCNT).
CMGI`s corporate headquarters is at 100 Brickstone Square,
Andover, MA 01810, Tel: [phone]. CMGI Ventures has offices there
as well as at 3000 Alpine Road, Menlo Park, CA 94028. For additional
information and a complete listing of the CMGI and CMGI Ventures
companies, see http://www.cmgi.com and http://www.ventures.com.
SiteHarbor is a registered trademark of NaviSite, Inc. All other
trademarks are the property of their respective owners.
--30--jr/bos*
CONTACT: NaviSite, Inc.
Brenda Suarez, 978.946.8660
bsuareznavisite.com
or
NaviSite, Inc.
Dave Roy, 978.946.8643
or
Beaupre & Co. Public Relations, Inc.
Darby Johnson, 603.559.5809
djohnsonbeaupre.com
TodINDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE HARDWARE
INTERNET SOFTWARE
Today`s News On The Net - Business Wire`s full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com


(c) 1998 Business Wire

[investor_007]

NaviSite and Dell Expand Outsourcing Relationship; Companies
NAVI.O>


NaviSite and Dell Expand Outsourcing
Relationship; Companies Collaborate to Meet Variety of Customer Needs,
Speed Installations

ANDOVER, Mass.--(BUSINESS WIRE)--April 5, 2000--NaviSite, Inc.
(Nasdaq:NAVI), a leading ASP and Web hosting company and a
majority-owned operating company of CMGI, Inc. (Nasdaq: CMGI), today
announced that the company has expanded its relationship with Dell
Computer Corporation. Under terms of the agreement, NaviSite and Dell
will work together to promote the adoption of outsourcing services,
collaborating on cross-promotional programs in order to provide
flexible services that suit a wide array of customer needs.
As part of the expanded relationship, NaviSite customers will
benefit from a variety of programs designed to enhance flexibility,
scalability and speed of installations. The companies have agreed to
introduce a customized implementation of Dell`s OnsiteCapacity
program, through which NaviSite will stock servers in anticipation of
forecasted demand. Additionally, NaviSite will have access to Dell`s
DirectShip program providing next-day availability for specific Dell
server configurations. Combined, these programs will provide one of
the industry`s most responsive hardware provisioning services,
allowing NaviSite to quickly fulfill its customers` requirements for
Dell Internet infrastructure hardware.
Dell`s willingness to work with NaviSite "on Internet time" came
into play recently when NaviSite was asked to provision 40 Dell
PowerEdge(TM) 2450 servers for Catalog City, a California-based
Internet eCommerce company. Dell shipped the servers within three days
of receiving the order.
Also under terms of the agreement, Dell has agreed to promote
NaviSite`s outsourcing services in a cooperative referral program. One
of NaviSite`s key differentiators is its ability to provide managed
hosting services. The combined hosting offerings of Dell and NaviSite
provide an extensive array of options for customer needs. Dell`s
recently introduced hosting solutions are ideal for companies just
beginning to explore the potential of the Web, while NaviSite`s
flexible and scalable options are well-suited to customers with more
demanding needs.
"Dell began its relationship with NaviSite during 1999 with an
equity investment and strategic relationship. Today, we are extending
our relationship because we believe that the wide range of management
services offered by NaviSite is highly appropriate for many of Dell`s
customers. For customers seeking managed, high-end hosting and
applications services, we will work with NaviSite to fulfill their
needs," said Judi L. Webster, vice president and general manager of
Dell`s Internet Partner Division.
NaviSite provides proactive monitoring and secure, reliable,
high-performance hosting and management for Web sites and Internet
applications. NaviSite`s value-added management services allow
customers to focus on their core business competencies by offloading
the burden of technology deployment, monitoring and management.
Outsourcing their Web operations to NaviSite allows businesses to
improve the reliability and availability of their Web sites, as well
as reduce time to market and minimize the costs associated with
developing and maintaining business networks and software
applications.
"Our customers, and the industry at large, stand to benefit from
the close working relationship between NaviSite and Dell, as our
alignment covers a full range of customer needs," said Joel Rosen, CEO
of NaviSite, Inc. "The easier it is for customers to find and
implement a solution tailored to their very specific requirements, the
more successful their outsourcing experience will be. We expect our
agreement with Dell to help us achieve this goal for customers."
About NaviSite
NaviSite, Inc., is a leading provider of outsourced Web hosting
and application services for companies conducting mission-critical
business on the Internet. The company`s goal is to help customers
focus on their core competencies by outsourcing the management and
hosting of mission-critical Web sites and applications. NaviSite is a
majority-owned operating company of CMGI, Inc. with minority
investment from Microsoft Corporation.
NaviSite`s SiteHarbor(R) solutions provide secure, reliable,
co-location and high-performance hosting services, including
high-performance Internet access, and high-availability server
management solutions through load balancing, clustering, mirroring and
storage services. In addition, NaviSite`s enhanced management
services, beyond basic co-location and hosting, are designed to meet
the expanding needs of businesses as their Web sites and Internet
applications become more complex and as their needs for outsourcing
all aspects of their online businesses intensify. The company`s
application services, which include application hosting, management
and rental, provide cost-effective access to, as well as rapid
deployment and reliable operation of, business-critical applications.
For more information about NaviSite, please visit www.navisite.com
or by phone on the East coast call 888.298.8222, on the West coast
call 888.755.5525. NaviSite is headquartered at 400 Minuteman Road,
Andover, MA 01810.
Statement Under the Private Securities Litigation Reform Act
This release contains forward-looking statements based on current
expectations or beliefs, as well as a number of assumptions about
future events, and these statements are subject to important factors
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The
forward-looking statements in this release address a variety of
subjects including, for example, the expected benefits resulting from
the agreement and relationship between NaviSite and Dell and the
expected functionality of the combination of NaviSite`s and Dell`s
technologies and products. The following factors, among others, could
cause actual results to differ materially from those described in
these forward-looking statements: NaviSite`s products and technologies
may not successfully interoperate with those of Dell, the parties may
not achieve the expected results from the strategic relationship on a
timely basis due to market conditions or other reasons beyond the
control of the parties and increased competition and technological
changes in the markets in which NaviSite and Dell compete. For a
detailed discussion of these and other cautionary statements, please
refer to the filings made by each of NaviSite and CMGI with the
Securities and Exchange Commission, including NaviSite`s most recent
Quarterly Report on Form 10-Q and the Annual Report on Form 10-K of
CMGI for the most recently ended fiscal year.
SiteHarbor is a registered trademark of NaviSite, Inc. PowerEdge
is a trademark of Dell Computer Corp.
Other names may be trademarks of their respective owners.
--30--kc/bos*
CONTACT: For NaviSite:
NaviSite, Inc.
Brenda Suarez, 978.946.8660
bsuareznavisite.com
or
Beaupre & Co. Public Relations, Inc.
Darby Johnson, 603.559.5809
djohnsonbeaupre.com

Today`s News On The Net - Business Wire`s full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com


(c) 1998 Business Wire